Some people think that property investing is all about buying in the right location. Others are convinced that finding the latest hotspot is the key while price remains the focus of many more. The truth is that successful property investing depends on all of these things, yet at the same time, none of them. That’s why advice on investment property is vital for any property investor.
Let me explain why this is true with my 5 tips.
There is a reason why Education is first on the list. Can you guess why? Of course, it’s the most important. I’m not talking about going to University or getting a Diploma. I’m talking about learning about yourself so you can find out the things you don’t see. You must educate yourself about yourself first, then you can find out about the property market. You are the key to your success, not the location or price of the investment. Only you have the ability to make the decisions that will benefit you, and your family, long term. Learn about why you behave the way you do, how to make decisions logically and invest in growing yourself.
You must know why you want to be able to invest and you must believe in it too. This belief in “why” will sustain you when things don’t look like they are going your way. Your belief will keep you focussed and strong in the face of adversity. Only after you understand this can you decide on your goal. Any Goal worthy of achievement takes effort and dedication but Goals also need to follow a plan. Following a Plan shows you how to reach your goal and when investing is involved you definitely need the help of a professional. Invest in a Financial Planner to help formulate your Plan.
- Finance capability
Finance determines property price. No matter how much money you have, finance can provide avenues to leverage your borrowing capacity so your goals are possible. Your borrowing capacity will change as your own personal circumstances change and as the finance market changes. Your ability to access finance will have a direct correlation on your ability to accumulate investment properties. Flexibility is the key and being open to getting the money should be your priority. The complexity around borrowing demands you seek advice from a professional. This is not your local Bank lending Officer. A Bank can only offer its own product based their own set of Credit Guidelines. Their rules may not suit you anyway so use a Mortgage Broker for finance capacity and all avenues can be explored.
Once Finance is established you can move ahead to where your investment should be located. Like every other aspect of investing, selecting a property starts with a broad set of parameters. What state, what suburb, what type of dwelling? Where do you start? You can certainly research the data you can find that you think is relevant or you can go to a professional who can access the data that’s important.
Once you have successfully followed all of these steps I encourage you to start again from the beginning. Continue to invest in your own development and learn everything you can about yourself. You are the key to successful investing because you believe in why you are doing it. Revisit your Goals and your Plan and make adjustments with the help of your Planner. Revisit your finance position annually and when the time is right verify your capacity. Only then can you look to buy another property.
To be successful demands that you are able to remain solid and focused when everyone around you is full of doubt. The best priced property in the best location will not provide you with any comfort if your belief isn’t strong enough to stick to the plan.